Bitcoin Bottom Building
For one week, bulls have been defending the 3,800 USD value area with success. But on March 4th they had to give way to the constant pressure. Prices fell quickly to the 3,700 USD level. These extended times of range bound trading are typical for Bitcoin Bottom Building in sideways ranges.
This 60 minute chart of Bitcoin shows (represented by the yellow candlestick wicks) how the bulls defended 3,800 USD :
If the closing price for BTCUSDT should be above and near 3,686 USD on March the 5th, a quick daily long play could provide a short term opportunity.
Long entry opportunity on March 6th for daily swing trade long play:
It is important to see clearly so that the weekly chart, as the more dominant higher time frame, is favoring the short side. As such the suggested swing play setup should be managed with our quad exit strategy, tight stops and a conservative financing target.
Larger time frames suggest this to be a counter directional play:
This especially since what has been support (3,800 USD), has now become resistance. The 4 hour market profile chart illustrates the overhead pressure.
It is prudent to attempt low risk entry points in a bottom building phase of the market, even so they might not look as attractive at first. No one knows when the market might turn. Being early positioned doesn’t hurt, if the risk parameters are very conservative.